All Forum Posts by: Jerryian Francois
Jerryian Francois has started 21 posts and replied 74 times.
Post: Should I use a heloc on my property for a flip !
- Investor
- Miami, FL
- Posts 76
- Votes 37
Quote from @Carlos Valencia:
Quote from @Jerryian Francois:
Hey bigger pockets happy holidays to you all I really need some advice here ! So it’s been 3 years since I brought my first duplex @415k its now build up equity and is worth over 540k so I have equity in it a refinance doesn’t make sense because I’m locked in at a low rate but I do t want to wait until rates drop to get back in the market I’m wondering should I tap into that equity via private money heloc and use about 30-50k to get into a flip deal the lender is giving 2 years to pay back the heloc ! Would love to hear from you guys !? Thank you in advance
Hi Jerryian,
Yes thats a great strategy to get into flipping. Is this duplex your primary or is it an investment? Reason I ask is because Helocs have different terms depending on the property occupancy. Usually lenders allow you to go up to 70% LTV on investment Helocs but for primary owned properties you can go up to 90% LTV.
First thing is to figure out which category best fits your scenario. Then you have to see if you have enough room to use either or. One way to know your value is by using a virtual appraisal and if it comes in too low then you order a full appraisal to see if you can get a higher value. It will depend on the comps in your area.
Do you have a deal ready to go? you will also need to time it correctly to know when you will need the money by. Theres many different terms for Helocs so its important to choose the best one for your needs. Theres 3 year, 5 year and 10 year draws. These are just a few things to keep in mind when using a Heloc.
Hope this helps a little but more on how Helocs works. Everyone scenario is different. Happy to connect if you wish to discuss further.
@Albert Bui @Matthew Kwan
Post: Should I use a heloc on my property for a flip !
- Investor
- Miami, FL
- Posts 76
- Votes 37
Quote from @Angela Martinez:
I would personally conduct a side-by-side comparison between a HELOC and hard money, and then proceed accordingly.
Most definitely 🔥 the guy is a private money lender and he does helocs!
Post: Should I use a heloc on my property for a flip !
- Investor
- Miami, FL
- Posts 76
- Votes 37
Quote from @Axel Meierhoefer:
Quote from @Jerryian Francois:
Hey bigger pockets happy holidays to you all I really need some advice here ! So it’s been 3 years since I brought my first duplex @415k its now build up equity and is worth over 540k so I have equity in it a refinance doesn’t make sense because I’m locked in at a low rate but I do t want to wait until rates drop to get back in the market I’m wondering should I tap into that equity via private money heloc and use about 30-50k to get into a flip deal the lender is giving 2 years to pay back the heloc ! Would love to hear from you guys !? Thank you in advance
Post: Should I use a heloc on my property for a flip !
- Investor
- Miami, FL
- Posts 76
- Votes 37
Quote from @Ray Hage:
I would say it depends on the terms and rate the loan. How much money is expected to be made from the flip? 2 years is plenty of time for a flip especially if it is mostly cosmetic. What kind of rate do you have with the HELOC and how sure are you about this particular flip? Have you worked with this contractor before? There are a lot of questions but these are things to consider to see how much risk/reward is involved
So I have experience with the contractor i haven’t found a deal yet I have experience flipping but I never used a heloc .the guy private money and he gives out heloc using his cash haven’t talked to him yet about numbers he is on vacation but I was looking to pull out 50k so I can use that to get into a flip deal but wanted a idea what would that look like paying the 50k and making profit
Post: Should I use a heloc on my property for a flip !
- Investor
- Miami, FL
- Posts 76
- Votes 37
Hey bigger pockets happy holidays to you all I really need some advice here ! So it’s been 3 years since I brought my first duplex @415k its now build up equity and is worth over 540k so I have equity in it a refinance doesn’t make sense because I’m locked in at a low rate but I do t want to wait until rates drop to get back in the market I’m wondering should I tap into that equity via private money heloc and use about 30-50k to get into a flip deal the lender is giving 2 years to pay back the heloc ! Would love to hear from you guys !? Thank you in advance
Post: Real estate Update!!
- Investor
- Miami, FL
- Posts 76
- Votes 37
Quote from @David M.:
So, guessing little to no equity to cross-collaterailze?
Post: Real estate Update!!
- Investor
- Miami, FL
- Posts 76
- Votes 37
Quote from @David M.:
Yup, that's a usual tough one. At first glance, at best this might be where you have to go to the private lending market. Do you have any other properties that can be cross collateralized?
Yes I have another duplex but I recently purchased it with FHA
Post: Real estate Update!!
- Investor
- Miami, FL
- Posts 76
- Votes 37
Hey guys I’m in need of some Advice !
So one of my Ltr tenants have broken the lease that we had in place and he have successfully moved out ! Which mean I now have 1of 3 units free he was suppose to leave this year November
Now the problem is I have already been in the process of trying to get a Heloc to cover the renovations I plan to do to the u it's but it's looking like me and my partner DTI is making that difficult and we might have to pivot were given the option to use a DSCR Loan to cover the rehab instead but that mean I would lose my currrent low mortgage Rate to do this loan which I didn't want to Lose but with renovations I will be making double on Airbnb ! Potential 80-100k if renovated correctly would love to hear you guys input really would appreciate it !
Post: Funding for renovation on STR MTR PROPERTY OPTIONS
- Investor
- Miami, FL
- Posts 76
- Votes 37
Quote from @Simmy Ahluwalia:
Got it. For just $60k-ish, you should opt for an Unsecured Line of Credit. A lot of my investors use this for down-payment, materials, expenses, etc....it's 100% credit score and credit history based.
Post: Funding for renovation on STR MTR PROPERTY OPTIONS
- Investor
- Miami, FL
- Posts 76
- Votes 37
Quote from @Simmy Ahluwalia:
Hi @Jerryian Francois - what do you mean by, "conversion"? If they are tenanted properties already, then the only items you will need will be furnishings, correct? Or, do the properties need cosmetic/renovation work to make them more appealing to STR customers?
Pretty much light cosmetic work update also me floors kitchen backsplash to get them more appealing as you stated ! Correct